Bank reconciliation is when most BAS preparation is done
During the bank reconciliation process where the bookkeeping software entries are matched to the bank statement entries the bookkeeper makes sure that the correct codes are used. It’s these codes that are linked to a tax code and if everything is setup correctly then preparing the BAS can take as little as a few minutes using most modern accounting software programs.
The compliance issue that most small businesses have is that someone needs to be responsible for the information entered and the codes/tax codes associated with each transaction and that is where the TPB (Tax Practitioners Board) comes in. The TPB is the responsible entity to make sure that Tax Agents and BAS Agents have the skills and education to know exactly what they are doing. It also places responsibilities on them for the information that is lodged and as a result they must have Professional Indemnity insurance to protect them from any mistakes and the damages resulting from those mistakes.
Who can do your bookkeeping
The daily data entry of source information is usually performed by data entry operators, office admin and A/R and A/P staff and this is usually performed once your accounting system is setup correctly – that means using the right tax codes. The great thing about this is that your daily cost of being in business can be lower than hiring an accountant or registered BAS agent to do all your data entry work!
It is important as a business to be aware of what an ordinary work can perform and what needs to be performed by a Registered BAS Agent and these examples on the website for the Tax Practitioners Board lays it out pretty clearly.
GST Reconciliation Trouble-shooting prior to lodgement
Experienced BAS agents know the areas that cause most difficulty and confusion when it comes to using the right tax codes so they’ll often review your data searching for these transactions first. A common method is to run a series of GST reports and do a GST reconciliation using these reports.
Who can lodge your BAS?
Your Tax Agent (usually your Accountant) or a Registered BAS Agent can lodge your BAS for you and it’s up to the business owner to decide who they want this to be. Many small businesses prefer to lodge their end of year financials as well as their BAS statements with the one main tax agent so there is scope for bookkeepers to work under the supervision or mentorship of a tax agent.
Often you’ll find a bookkeeper with a lot of experience will do a fantastic job with regards to data entry, debtor and credit management and reconciliation at a comfortable price and work with a tax agent for the lodgement and overseeing of data entry and reconciliation.
Typical charges for BAS auditing and lodgement are:
- $150 for Bank Reconciliation and BAS information review and $55-75 per hour to fix any issues identified, or
- Fixed fee for lodging $150 and a fixed rate per correction depending on transaction types – request a quote to get a clear rate
Learn more about BAS Audits and Self Assessment
Are you a bookkeeper who needs to work relevant hours?
If you are a bookkeeper who wishes to become a Registered BAS agent you can partner with National Bookkeeping to get your professional hours and work with one of our BAS agents to provide a wider range of services. Learn more about joining us for your bookkeeping business
See other tasks performed by bookkeepers